This paper reviews the empirical literature on technology spillovers from foreign direct investment (FDI) in developing countries. The sample includes 32 studies that model the contribution of FDI presence to local productivity in the host country through spillover effects such as those...

We investigate the spatial distribution and organization of an imperfectly competitive industry when firms may choose to operate more than a single production unit. Focusing on a short-run setting with a fixed mass of firms, we fully characterize the spatial equilibria analytically. Comparing...

This paper examines the impact of financial sector foreign direct investment (FSFDI) on economic growth by estimating a panel data model for 11 Central and Eastern European countries (CEECs) between 1996 and 2003 in a cross-country growth accounting framework. The analysis concentrates on the...

Foreign direct investment is in reality a heterogeneous flow of funds, composed of both greenfield-FDI ("greenfield investment") and acquisition-FDI (cross-border mergers and acquisitions). We analyse the choice of FDI mode in an international oligopoly where process R&D decisions are made...

A new literature on firm heterogeneity and firm level globalisation strategies has developed rapidly over the last decade. New insights on why some firms export and others do not, why some firms fail to survive in export markets and why some choose to produce overseas rather than export have...

We derive gravity equations from three different general equilibrium models incorporating multinational firms. We show that gravity equations are particularly adapted to the analysis of foreign affiliates' activities of multinational firms. However, the different theoretical models lead to...

This paper argues that China's exchange rate policy played a critical role in its FDI boom. Devaluation of the Yuan (Renminbi) and the policy of pegging the Yuan to the Dollar both improved China's competitiveness in attracting Foreign Direct Investment. Examining the hypothesis in the context...

The tradition of gravity models is in the analysis of trade flows with market size and geographic or economic distance as core variables. Both these variables can be important determinants of FDI, too. However, when such models are used to explain FDI, there can be differences in the mode of...

India, a late integrator in the global market for clothing, has followed a path to integration that is quite different from the experience of some of its major competitors. Unlike China, Mexico, Eastern Europe and other South Asian countries, India's recent surge in clothing exports has occurred...

Foreign producer services can provide substantial benefits for domestic firms. We build on earlier monopolistic-competition models of intermediate producer services in this paper. Results show that: (1) while foreign services are partial-equilibrium substitutes for domestic skilled labour, they...